MICE is probably something you've seen many times. It is a crucial segment in the hospitality industry and can generate most of a hotel's revenue. If you are interested in learning more about MICE, read on to learn about the different technologies used, jobs and career opportunities, and more.
What is MICE and why is it essential for the hospitality industry?
First, let's clarify the meaning of this term. The acronym MICE stands for Meetings, Incentives, Conferences and Exhibitions. These activities make up a large portion of global business travel, with regular events taking place in nearly every industry. The purpose of these events is always to bring professionals together, encourage connections, encourage new ideas and encourage growth. MICE events are traditionally primarily business-oriented. However, organizers have begun to add recreational elements to larger events to motivate attendees and create a more memorable experience.
This type of travel is a significant source of income for many hotels and the entire travel industry. MICE stands for an important segment in the hotel industry, which, depending on the equipment of a hotel, can generate over 50% of the turnover of a property.
Exhibitors and attendees coming to the city for events often need accommodation, and hotels near convention centers can usually benefit. Exhibitors and attendees often fill meeting facilities or hotel rooms near convention centers. Ato learnA survey conducted in Hong Kong found that MICE guests spend on average 17.5% more than leisure guests. This is only partially the case, as important events in an area can lead to increased demand and higher room rates.
Hotels that host on-site meetings or conferences may offer organizers discounted rates. However, you can offset this with revenue from meeting and food & beverage packages. MICE can be a reliable source of recurring revenue as many conferences and trade shows are held regularly. As a result, hotels often plan their annual budgets around these events.
What you should know about MICE
European spending on MICE is increasing
MICE spending fell during the economic downturn, but is picking up again now that times have changed. More and more countries are investing in MICE and promoting their destinations as event locations. According to American Express, MICE spending is growing the most in Europe, followed by Central and South America. North America has the highest growth rates.
MICE travelers typically spend more than leisure travelers
MICE travelers spend more money because their companies cover most of their expenses, while leisure travelers have to pay for their trip. Even if the company only pays for transportation and accommodation, MICE travelers still have more money on their hands because they don't have to spend their budget on the most expensive parts of the trip.
Over 50% of business travel is for MICE purposes
According to UNWTO and IPK International, MICE tourism accounted for 54% of business trips. Changes in traditional business tourism, fueled by technological developments that enable video conferencing, contrast with the ever-increasing demand for MICE tourism.
How the hospitality industry is recovering from the COVID-19 pandemic
The hotel and MICE industry has had a difficult time, but things are looking up again. Most countries have lifted travel restrictions, allowing leisure and business travel to pick up again. This is excellent news for hoteliers and event management professionals.
Now we can see companies increasingly opting for large in-person gatherings over virtual events as people have come to appreciate the value of travel and live events. The organizers are investing more money in these events than before as the focus is once again on ensuring high quality.
When will there be a total return of MICE?
Travel demand has increased, leading to higher rates. Even if things aren't quite as far as before, things are already looking much better for the future. If this trend continues, 2023 will be an excellent year for travel, especially for in-person events.
How to win customers from MICE tourism for your hotel
1. Define and promote your benefits
To design a marketing strategy that will effectively attract MICE tourism customers, you should first define what benefits your hotel offers and understand their value to potential customers. Consider what facilities you have that would appeal to MICE travelers and what their needs are that you can best meet. The location of your hotel or unique features such as A grand ballroom, for example, could be attractive to potential clients planning events. Incidentally, many hotels also turn their ballroom into a plenary hall.
What else? Your next step is to create a landing page that clearly outlines what you have to offer your target market. Some hotels go as far as creating separate websites for their MICE services, as the positioning of the hotel (e.g. for leisure travel vs. MICE tourism) can be very different. By changing the structure and presentation of your website content, you can make your MICE landing page more attractive to potential visitors.
Does it sound like a headache? Yes it is. However, we have a solution for you. If you want to create revenue-driven and visually appealing mobile-friendly websites with a great user experience that connects you with your potential guests, turn to the experts at HotelFriend for high qualityWeb development services.
2. Determine customer needs
MICE customers consider service quality when choosing a venue. They want to be sure that their event is well organized and that the hotel takes care of their needs.
●flexibility. A key factor for MICE customers is flexibility. Since the outbreak of the COVID-19 pandemic, travelers have become significantly more cautious. This has resulted in a strong preference for flexible bookings with the option of a refund. The hotels that offered ultra-flexible change and refund policies made the best decision for this challenging time and gave them a significant advantage over the competitors who skipped this period. Flexible reservations are an excellent way to reassure customers in this volatile world with uncertainties related to COVID-19.
Put the needs of your guests first by usingOnline booking softwareby HotelFriend! This software provides a platform that centralizes everything your guests need. Your guests can check available rooms on a special calendar, book accommodation with just a few clicks and order additional services or offers in advance via the website or app. Check out how it workshere.
●Preis. Of course, the price plays an important role for MICE customers. They want to get the best value for their money and be sure their event is within their budget.
●Ort. Venue location is also crucial for MICE customers. You want to be sure that the venue is easily accessible and conveniently located.
●Availability. MICE customers also want to be sure that the venue they choose is available on the dates they want. You want to maintain your appointments and your event.
●facilities. Customers need to be sure that the venue they choose has the facilities they need for their event. They want to be sure that their event will be comfortable. The security of the participants and data protection guarantees are also important to them.
Take full advantage of the mobile experience
Hoteliers now have an excellent opportunity to improve and optimize their services by implementing specialized software like theConcierge-Appfrom HotelFriend into their workflow. This app can help hoteliers solve many problems and provide better service to their guests.
This is a good offer for both hotel guests and hotel employees. The concierge service, offered through the hotel's mobile app, is more convenient for guests who are already familiar with mobile devices. Language barriers can also be avoided more easily. All key services guests need are available through the app, e.g. B. checking into their room, ordering food, requesting room service or booking other services.
In addition, HotelFriend's concierge app provides hotel staff with a digital record of guest desires and preferences, making it easy to sell ancillary services, collect customer data, launch loyalty programs, offer marketing campaigns, and retain customers.
4. Improved employee collaboration
Technologies play an essential role in hoteliers' routines, but the well-coordinated work of the team will always have a big impact. This helps to carry out the most complex and exciting projects qualitatively and efficiently in order to achieve significant success. Thattask management softwareby HotelFriend makes it easy for hotel staff to collaborate across different hotels and departments, giving them full control over their operations.
5. Use QR codes to better engage with customers
During the COVID-19 pandemic, QR codes became a staple of the hospitality industry. They enable hotels and restaurants to comply with health regulations and improve the overall customer experience. The QR code is a contactless way to make a payment, view a menu or make a reservation. It is cheaper and more environmentally friendly than other methods. If you're looking for a great digital menu option, check out HotelFriendorder management system. It offers many benefits, including 24/7 order availability, contactless ordering, and time and cost savings.
6. Maintain customer loyalty
When developing strategies it is important to make long-term commitments as this is crucial in the MICE sector. MICE is a recurring event. So if you make a good impression, chances are you'll get regular customers. Word of mouth is also a powerful form of communication in the MICE industry, and your happy clients would likely promote you and recommend you to their professional peers. If you want to succeed in the MICE industry, make sure you are known as a Rockstar MICE venue. Remember, MICE customers are looking for unique experiences that offer value for money. For European MICE customers, value is more important than price.
7. Check if there is any government support
In summary, if you engage in MICE tourism, the government can be a helpful ally for your hotel business. This type of tourism can have a positive impact on the economy and promote tourism throughout the year. As such, we encourage you to review regional and national MICE tourism policies to see what government support is available to businesses in this industry.
Which European markets are most promising for MICE events?
The Global Business Travel Association conducted a study analyzing the growth rate of the MICE market in different European countries in 2017 to find out which source markets are the most promising. The study showed thatDeutschland🇩🇪, dieUnited Kingdom🇩🇪,France🇫🇷,Spain🇪🇸 andItaly🇮🇹 make up 70% of the European business travel market. Of these countries, the UK and Germany have the most promising markets with growth of 12.4% and 8.4% respectively.
Due to convenience and visa policies, the most popular MICE destinations for European customers are closer to home in Europe. Germany, Spain and the UK are the most popular destinations.
Conclusion
The MICE segment is an integral part of the hospitality industry and can generate a significant portion of a hotel's revenue. According to studies, MICE tourism accounts for over 50% of business trips. Attracting MICE tourists can improve your company's bottom line and reputation. This is an excellent opportunity for hotels to expand their services and attract more customers. We hope this article has given you some ideas on how to start marketing to MICE travelers. Much luck!
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Author:
Bogdan Romaschko
Marketing-Chef
FAQs
What is the importance of MICE in the hospitality industry? ›
The MICE segment is a vital part of the hospitality industry and can generate a significant portion of a hotel's revenue. According to studies, MICE tourism makes up over 50% of business travel. Attracting MICE tourists can improve your establishment's bottom line and reputation.
What are the challenges and issues encountered by the hotel? ›We've looked at some of the most important hotel challenges faced in the hospitality industry, including operational issues, reputation management, payments, housekeeping and human resources, to name a few. It goes without saying that one of the best ways to overcome these challenges is by investing in human resources.
How do you deal with common challenges in hospitality industry? ›Solution. Engaging your guests on social media, messaging apps, and other online sources can work wonders and give you results in a few months. Implementing effective digital marketing strategies is a strong solution to such issues in the hospitality industry. Be consistent and patient with whatever tactics you apply.
What are the four major challenges of the hospitality industry? ›- Competition from Hotel Alternatives (like Airbnb) It's impossible to discuss challenges facing the hospitality industry without talking about the elephant in the room — ahem, Airbnb (and similar companies). ...
- Increasing Energy Costs. ...
- Data Security. ...
- Personalizing Guest Experience.
The major challenges of MICE tourism development in the research are were logistics/facility challenges like Less availability of performance place, hotel rooms, conference hall and open space for concert.
Which is the important factor of MICE? ›Growing Economy
A big factor to the growth in the MICE industry is the increase in the economy. When the economy is down (i.e., when people don't have as much disposable income), the MICE industry slows down as well. During hard times, people just don't have the money to spend on special events.
- Staff Shortages and Retention. ...
- Cost of Living Crisis. ...
- Increase in Hospitality Tech. ...
- Environmental considerations. ...
- Meeting demand.
- Lack of self-serve options. 70% of guests want to use technology to speed up service time. – ...
- Unclean rooms. ...
- Bad staff attitude. ...
- Mechanical issues. ...
- Lack of communication. ...
- Poor customer service. ...
- Poor food or beverage quality. ...
- Noisy neighbors.
- Experience & Personalization: Meeting the Needs of the Modern Guest. ...
- Hiring the Right Employees. ...
- Continuously Changing Consumer Demands & Markets. ...
- Missing the Marketing Boat. ...
- Rising operational costs. ...
- Driving Direct Business. ...
- Advancements in Technology.
- Make A Plan. While you don't know what is going to happen in the future, you can always plan ahead. ...
- Know You're Not Alone. Every person in this world has their low points. ...
- Ask For Help. ...
- Feel Your Feelings. ...
- Accept Support. ...
- Help Others. ...
- Think Big. ...
- Positive Mindset.
How can you handle problems in a hotel business explain? ›
...
Responding to in-person complaints in 5 steps
- Stay calm and listen. ...
- Identify the type of guest to whom you are speaking. ...
- Find the real source of the complaint. ...
- Find and offer a solution. ...
- Follow up to confirm that the problem was resolved.
The essential factors, influencing the success in the hospitality service industry, are as follows: value creation, development of the relationship with partners, ICT, as well as customer relationship management.
What is problem-solving skills in hospitality industry? ›Problem-solving
Problem-solving is one of the central parts of working in hospitality because you have to be able to identify the problems guests are having, create a plan of action to resolve them and follow through with guests afterward to ensure their satisfaction.
As outlined above, the MICE sector is made up of four main event types: meetings, incentives, conferences, and exhibitions. In the past, the overwhelming majority of all these event types were held in person.
What are some challenges that the MICE and event planners are facing today? ›- Challenge: Over Spending. ...
- Challenge: Thinking that You Have a Lot of Time. ...
- Challenge: Losing Attention of Guests. ...
- Challenge: Bad Weather. ...
- Challenge: Too Many Guests. ...
- Challenge: Not Paying Attention to Little Things. ...
- Challenge: Attracting Guests During Winter.
Several elements contribute to the success factors of the MICE industry. For the current study, areas identified were the business travelers, motivation, perception, satisfaction, marketing strategy, key performance indicator, technology trends, and challenges towards MICE industry.
What are the benefits of MICE? ›The MICE industry is important for every country, because it contributes to growth of both local and global economy. The industry creates employment, help build reputation for the country and the venue, and nurture many business opportunities and investments.
What is MICE in hotel industry? ›Meetings, incentives, conferences and exhibitions tourism (MICE tourism) is a type of tourism in which large groups, usually planned well in advance, are brought together.
What is the meaning and importance of MICE industry? ›Meetings, Incentives, Conferences, And Exhibitions. Art Boncato. Posted on Aug 20 2022 09:43 AM. The term MICE is well-known by people who work in the tourism, hospitality, and event industry. It's a unique concept that describes a dynamic and growing market, which is based on event organization.
Why are MICE important in the food chain? ›Mice are essential for the ecosystem because they help control specific populations in the larger ecosystem. They also serve as food for predators, while their droppings and movement help to fertilize and aerate the soil.
Why is MICE considered as fastest growing segment of tourism and hospitality industry? ›
In general term, MICE events involve attendees who share a common interest and gather in a place to have a meeting on that same interest. This is reason why MICE popularity is growing popularity worldwide.
What are the benefits of having mice? ›Benefits of House Mice
While mice are, in most cases, a nuisance, they can also be important. Mice feed on pest insects, which can be instrumental in keeping certain populations under control. Mice eat weed seeds and, as a result, help gardeners do their job.
The MICE industry is important for every country, because it contributes to growth of both local and global economy. The industry creates employment, help build reputation for the country and the venue, and nurture many business opportunities and investments.
What are the advantages of mice? ›Mice and rats have long served as the preferred species for biomedical research animal models due to their anatomical, physiological, and genetic similarity to humans. Advantages of rodents include their small size, ease of maintenance, short life cycle, and abundant genetic resources.